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Abterra unit now under liquidation, owes parent more than S$4.76m
MAINBOARD-LISTED mineral and resources company Abterra's Australian mining unit, which has now been placed under liquidation, owes the company more than previously disclosed, the board has said.
Wholly-owned subsidiary Abterra Australia owes its parent company more than S$4.76 million, up from the sum of roughly S$1.87 million originally stated when it went under voluntary administration, based on a report issued on Dec 17, 2018 by the liquidator.
"The amount recoverable from Abterra Australia, if any, by the company pursuant to the liquidation has yet to be determined," the board added in its announcement on Saturday night.
It said that it would update shareholders on the financial impact of Abterra Australia's liquidation after it gets more updates from A2Z Insolvency Solutions, which was appointed as liquidator on March 4 after previously serving as the subsidiary's voluntary administrator.
Abterra Australia was initially placed under voluntary administration by its parent company in August 2018 because the New South Wales iron mine where it held the right to the mining lease was unoperational amid "challenging business conditions", as the Abterra board said at the time.
Trading in Abterra shares was suspended in July 2018, after its request for an extension of time to hold its annual general meeting was rejected by the Singapore Exchange.